Answer: The journal entry a company uses to record the issuance of a note for the purpose of converting an existing account payable would be debit Accounts Payable; credit Notes Payable.
Explanation:
Yes if you actually try to become them
Answer:
A). 17.13 %
Explanation:
Given that,
Annual Dividend for the first year = $.58,
Annual Dividend for the second year = $.66
Annual Dividend for the third year = $.72
Annual Dividend for the fourth year = $.75
The current price per share = $10.08
To find;
The cost of equity = ?
Procedure:
(0.66 - 0.58)/0.58 = 0.137931034
(0.72 - 0.66)/0.66 = 0. 0909090909
(0.75 - 0.72)/0.72 = 0.0416666667
g = (0.137931034 + 0. 0909090909 + 0.0416666667)/3
= 0.0901689305
= {(0.75 * 1.0901689305)/10.08} + 0.0901689305
= 0.17128269
∵ 17.13% is the cost of equity.
The effect on the financial reporting of the company is that the liabilities on the balance sheet would be understated. This is because at the end of the year, a possible event was calculated. The management felt from the calculation of that event that it is possible that the event could become an actual liability and that the amount could be estimated explainably. So it would become understated if these calculations of probable events cannot be written down in the balance sheet or in the notes of the final statements. It is like a forecasting of possible events that may happen in the future to prevent losses in the company.
<span>It is not necessary to build a new market supply schedule </span><span>when there is a change in the price of a good
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